Beneath the label: Assessing video games’ compliance with ESRB and PEGI loot box warning label industry self-regulation

This extended abstract considers the ‘margins’ between video games and gambling embodied by so-called ‘loot boxes’ and the regulation thereof. Players spend real-world money on this form of in-game monetisation to obtain randomised rewards (Nielsen and Grabarczyk 2019). Concerns have been raised about loot boxes’ similarities with gambling and the risks that consumers might overspend money and experience harm (Zendle and Cairns 2018; Garea et al. 2021; Spicer et al. 2021). Children and other vulnerable consumers (e.g., people experiencing problem gambling issues) might be at particular risk of harm. Many countries are considering imposing legal regulation and a few countries have already taken regulatory actions. However, in most countries at present, paid loot boxes are specifically regulated only through industry self-regulation (Xiao et al. 2022). Previous research has repeatedly considered probability disclosures informing players of their odds of winning specific items (e.g., Xiao, Henderson, and Newall 2021), but another measure, text-based warning labels attached to age ratings, has received little research attention.